HDFC Pro growth Plus is essentially a unit linked insurance plan where the premium is invested in capital market. Generally speaking, the investment yields considerable rates of return while furnishing several other benefits of a comprehensive insurance coverage.
HDFC Pro Growth Plan – Features
The following are some of the fundamental features of hdfc progrowth plus plan:
- Facilitated with a Regular Pay option, the plan is essentially a ULIP plan.
- Life Option and Extra Life Option are two insurance coverage options furnished by the plan.
- Additionally, the plan has four fundamental investment funds such as the Blue Chip Fund, Opportunities Fund, Balanced Fund and Income Fund.
The Blue Chip Fund
As far as the blue chip fund is concerned, it is important to note that the possibility of risks and returns are equally high. The sole reason behind is that the fund configuration is tilted towards the equity asset allocation to the extent of over eighty percent.
However, the cardinal mark of this fund is the large cap equities investment and various other related equity instruments.
The Opportunities Fund
Like the blue chip fund, the opportunities fund also entails a considerable degree of risks and returns. Generally speaking, the fund configuration is more in favor of mid cap equities and various other equity related instruments.
The name itself suggests that the fund configuration is generally balanced across different asset classes. It must be noted that from 0% to 60% of the funds are allocated in government securities and fixed income instruments while 0% to 20% of the funds are primarily allocated in money market instruments and liquid mutual funds.
The Income Fund
As far as the income fund is concerned, it is quite similar to the balanced fund. The rate of risk and returns is moderate to high. Also, it must be noted that from 0% to 60% of the funds are allocated in government securities and fixed income instruments while 0% to 20% of the funds are primarily allocated in money market instruments and liquid mutual funds.
Benefits of the HDFC Life Pro-Growth Plan
The following are some of the major benefits of the HDFC Life Pro-Growth Plan:
- First and foremost, the concerned insured will receive the entire fund value on the date of maturity under the provisions of the plan.
- Secondly, one of the fundamental features of the plan is the relevant Settlement Option. Through this, maturity proceeds may be availed in parallel installments after the date of maturity for a period of five years.
- In case of the death of the concerned policyholder, 105% of the premiums shelled out during his lifetime are duly payable to the concerned nominee if the age attained is less than sixty years.
- As mentioned before, under the providential Extra Life Cover Option, the concerned policyholder, should he or she meet with accidental death, is liable to be paid an additional Accidental Death Benefit.
- According to the Section 80C of the Income Tax Act of India, insurance benefit is available on the premium paid.
- Additionally, EMI benefits are also available under the plan to the regular HDCF bank credit card holders.
- The plan also offers conducive premium payment options such as internet banking, credit card, cheque and auto debit facility, to name a few.
- It is important to keep in mind that as far as partial withdrawals are concerned, they are allowed every year with a minimum amount of Rs. 10,000 as per the provisions of the HDFC Life Pro-Growth Plan.
- Also, it is equally significant to note that necessary switches are also allowed every year if the concerned policyholder should opt to switch between the funds, as per the provisions of the HDFC Life Pro-Growth Plan.
- As far as future premiums are concerned, they may be redirected to a new fund. For this, the plan provides the beneficial Premium Redirection Option.
- It is important to keep in mind that a period fifteen days is given as grace period for monthly modes and a period of thirty days for other modes under the plan.
- There is also the Free Look Period. In this case, if the prospective policyholder is not satisfied with the coverage or the terms and conditions of the plan, he or she may cancel the policy within a period of fifteen days of receipt the respective policy documents, provided no claims have been made.
- As far as one of the key provisions of the plan is concerned, the benefit shelled out in case of suicide within a period one year of policy inception or revival is essentially the fund value as on that particular date.
- The policy may also be converted to paid-up policy. However, it must be kept in mind that this option is available only when the policy collapses or discontinues.
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